Ford makes well-known funding in electric car startup

Ford says it is miles investing $500 million in a firm that builds electric autos and tasked it with building a brand new Ford electric car.

The Detroit automaker is teaming up with Rivian, which no longer too long up to now announced the event of an electric pickup and SUV.

Michelle Krebs, govt analyst at Autotrader, says Rivian has been in the spotlight no longer too long up to now with varied opinion autos exhibiting at well-known auto shows and, extra critically, a capital infusion of $700 million led by Amazon in February.

“Ford’s funding in Rivian is a shipshape one,” Krebs talked about in an electronic mail to ConsumerAffairs. “Ford has dedicated to producing a mountainous number of electrified autos in due direction, including pickup autos, and Rivian has an inviting opinion to come by the job accomplished.”

Have interaction-grab deal?

The partnership between Ford and Rivian could perhaps perhaps well pay off for each and each corporations. For Rivian, which consists in its startup piece, it leverages Ford’s management, trip, and big volume in pickup autos, as nicely as its large distribution network.

“The Amazon funding in the Rivian mix could perhaps perhaps well nicely give Ford an in with the provision companies and products, perhaps with electric cargo trucks,” Krebs talked about. “And, of direction, sport utility autos are one more sizable opportunity the 2 could perhaps perhaps well collaborate on. The principle step to proliferate electric autos, and finally self sustaining autos, is by commercial fleets.”

Ford talked about it plans to spend the link-as much as manufacture a brand new car that will spend Rivian’s new platform, offering it along with its other planned electric autos.

Ford has talked about that it is miles engaged on an electric Mustang-form crossover focused for birth subsequent year. It also plans to roll out a 0-emissions F-150 pickup.